Questions - I want to sell my duplex and offer owner financing

[John Meurer]

I want to sell my duplex and offer owner financing.  

Location Milwaukee, WI

Where I need feedback is...

1.  If I sell the property and the buyer occupies one of the units.  Do I need an RMLO (Dodd-Frank)?

2.  If I sell to an investor that will rent out both units (not reside in the property), than no RMLO is needed, correct?

3. I want to protect both myself and the buyer.  I need recommendations on the process when we agree to the sale price.  (i.e.: get a real estate attorney to draft the promissory note and mortgage, close at a local title company, etc.

4.  I want to collect property tax and insurance each month from the buyer to ensure these items are getting paid.  Can I do this?  Do I need to use a special account to hold these funds (escrow)?

5.  This property is owned by a single member LLC I created.  Can I write up the contracts with the LLC as the seller or is it better to sell in my personal name?

Thanks for your feedback.

[Daniel Hanson]

@John Meurer

I bought a single family rental property in Milwaukee with seller financing.  It is a general warranty deed sale, not a land contract, so title transferred at time of sale. I am not residing there, so the Dodd-Frank rules don't apply.   Because title transfered, I am responsible for all property expenses directly to water utility, property taxes etc, without having to send them to the seller first.  The seller has the ability to foreclose like any other lender if I stop paying on the note.

We set up a payment schedule for the mortgage directly to the seller's LLC address using billpay from my LLC's checking account. The note itself is set up by a lawyer using State Bar of Wisconsin form 16-2003 'Fixed Rate Note', the mortgage is set up using State Bar of Wisconsin Form 21-2003 'Mortgage'